Sales force management by Abdul Gafoor

FMCG Sales Force Management by

Abdul Gafoor for www.pureoranges.com 1

FMCG SALES FORCE

MANAGEMENT



Sales Force - Design .

Recruitment.

Selection.

Training.

Supervision.

Motivation &

Evaluation.



Sales Force - Design

Sales Force - Size



Steps to estimate Sales Force size.

1. Plan the number of towns to be covered.

2. Plan the number of beats to be covered.

3. Plan the number of outlets to be covered.

4. Plan the frequency of coverage.

5. No of outlets per day covered by a sales force

Sales Force Size



Example.

1. Towns planned : 8

2. Beats / Localities per town : 5

3. Outlets planned per beat : 40

4. Frequency of outlets coverage : weekly.

4. No Of outlets per day by a Sales Force :40

5. No Of Days working in a month : 24

Sales Force Size



1.Total number of beats : 40

2. Total Outlets Coverage : 1600

3. Total Callage : 6400

Sales Force Size



Calculate the Sales Force requirement.

1. Total Callage : 6400

2. Per day callage : 6400 / 24 = 267

3. Total Sales Force required : 267 / 40

7

Sales Force Size




Exercise




4. Frequency of outlets coverage : weekly.

4. No Of covered by a Sales Force per day : 36


Sales Force Size



Solution

Total number of beats : 144

Total Outlets Coverage : 6336

Total Callage : 25344

Per day Callage : 1102

Sales Force required : 31

12 x 12

144 x 44

6336 x4

25344 / 23

1102 x 31

Sales Force Size




Exercise -2




4. Frequency coverage : 50 % weekly & 50% monthly.

4. No Of covered by a Sales Force per day : 30


Sales Force Size



Solution

Total number of beats : 572

Total Outlets Coverage : 14872

Total Callage : 37180

Per day Callage : 1430

Sales Force required : 48

26 x 22

572 x 26

14872/2 x 4 + 14872/2 x1

37180/26

1430 /30

Sales Force Size



From Part -1 – We know how to calculate

number of Sales Force required.

The Part -2 – Is about recruitment

of experienced sales force.

How to select right Sales Force.



Recruitment

Selection Criteria

Written test

Group Discussion

Personal Interview



Recruitment

Job knowledge

Written test is to know the candidate’s job knowledge.

To what extent the candidate can think and fulfill the job requirement

To decide the candidate’s training requirements.

To know the candidate’s numerical abilities.

Written test



Recruitment

What job knowledge required to a FMCG Sales force.



Recruitment

1. MARKET MANAGEMENT.

2. DISTRIBUTOR MANAGEMENT.

3. PEOPLE MANAGEMENT.



Recruitment

MARKET MANAGEMENT.

SALES MERCHANDISING



Recruitment

DISTRIBUTOR MANAGEMENT.

INVESTMENT INFRASTRUCTURE INVOLVEMENT INFLUENCE



Recruitment

PEOPLE MANAGEMENT.

ITINERARIES

& CONTACTS

CALLAGE

& PRODUCTIVITY

TRAINING

& DEVELOPMENT

MOTIVATION

& INCENTIVES



RecruitmentWritten test

WRITTEN TEST STARTS NOW




Question-1

Modern distributors is the distributor for a FMCG company.

In his town total beats available are 6 and 310 outlets.

“A” Class outlets Contributes to 20% , “B’ Class contributes to 31.93 % ,

From the balance outlets “C” Class contributes to 29.72 % and

“D” Class contributes to 70.28

FIND OUT CLASSIFICATION OF OUTLETS




ANSWER

“A” Class outlets :

“ B” Class outlets :

“ C” Class outlets :

“ D” Class outlets :

62

99

45

104




Question-2

Modern distributors has launched a new brand called “ VOGIR”. The

Placement norms are “A” Class : 24 pieces, “B” Class : 6, “C’ Class : 3 &

“D” Class : 3 pieces in every second outlet.

Find out launch quantities.




ANSWER

“A” Class :

“ B” Class :

“ C” Class :

“ D” Class :

1488

594

135

156




Question-3

The launch and off take sale trend as follows. Launch week sale : 2000

Pieces. 2nd

week : 2900 pieces. 3rd

week : 3000 pieces and 4th

Week : 560 pieces. At the end of 4th

week 63.38 % of the target achieved.

Find out what is the total launch target of “ VIGOR”.




Answer

TOTAL LAUNCH TARGET:13348




Question-4

During the launch the company has given two successive trade discounts

Of 8.33% and 8.33 % to all “A” Class outlets.

Find out what is two successive trade discounts of 8.33% and after 8.33 %

are equivalent to a single discount .




Answer

15.96




Question-5

Modern distributors have got 6 salesmen. The total callage & productivity

Of 6 as follows. Total calls available pa : 14880. Total calls made pa :14865.

Total Productive calls pa :10405 .Total secondary sales pa : $ 2438

thousands. Total Brands sold pa :11873 and range sold pa :35620.

1.Average calls made by per salesman.

2.Average productive calls made by per salesman.

3.Average secondary sales by per salesman.

4.Average secondary sales per week.

5.Average secondary sales per week per salesman.

6.Average brands sold by per salesman.

7.Average range sold per salesman.




Answer

Average calls made by per salesman : 2477.5

Average prod calls made by per salesman : 1734.16

Average secondary sales by per salesman : 406333.33

Average secondary sales per week per salesman : 7524.69

Average brands sold by per salesman : 1978.8

Average range sold by per salesman : 5936.66




Question-6

Total invoices value from company to Modern distributor was $ 1976000

For the total year. The closing stock value at the end of the year$ 20000.

M/s Modern distributors investment for the year as follows.

Average stock: 2 weeks. Average credit: 8 days. Unpaid stocks : $ 11,000.

Due to company : $ 13,000 and due to company : one day secondary sales.

Expenses: 2.1 % of gross profit.

Calculate : Gross profit. Gross margin. Number of rotations.

Investment in stocks in $.Investment in market credit in $. Net investment.

Expenses in $. Net margin. Net profit. Return on investment.




Answer

Gross profit : 2477.5

Gross margin : 1734.16

Number of rotations : 406333.33

Investment in stocks in $ : 7524.69

Market credit in $ : 1978.8

Net investment in $ : 5936.66

Expenses in $ 5936.66

Net margin : 5936.66

Net profit : 5936.66

ROI : 5936.66




Question-7

M/s Modern distributor operated different trade promotions on one brand.

To achieve the target. First 2 months:24 + 1, next 2 months:6 + 1, next 2

Months: 10 + 1 , next 3 months :16.66% and the last 3 months:3 + 1. After all

The promotions, the cumulative target achievement was: February end: 18%

April end :26% ,august end:78%, November end:83% and December end :91%

Calculate : % of different promotions operated.

Achievement % V/s time lapse comparison.




Answer24 + 1 4.17 %

6 + 1 16.67 %

10 + 1 10 %

3 + 1 33.34 %

February : 18% 16.67 %

April :26% 33.34 %

August : 78% 66.67 %

November :83 % 91.67 %

December :91 % 100 %




Question-7

Mr. Rambo, sales officer has been handling M/s Modern distributors since

One year. He always feels that the capital is the only requirement to

Appoint a new distributor.

What are the key factors to be looked to appoint a new distributor..




Answer

INVESTMENT

INFRASTRUCTURE

INVOLEVEMENT

INFLUENCE

Please remember the 4 “ l ” formula.




Question-8

Management decided to add one more new town to Mr. Rambo. The town has

Got 1000 outlets. 20% outlets weekly coverage,25% fortnightly and the

Balance monthly.

Mr.Rambo to prepare manpower required to 1000 outlets as the sales

Force covers 40 outlets per day and works 24 days in a month.




Answer

1.05 1000 / 40 /24




Question-9

Mr. Rambo is handling a company depot and always facing the problem of

Depot stock management. As per the policy, all the depots should have

One week floor stock plus transit days. Mr. Rambo's depots transit time

Is one week.

This is the data of depot stock.

Product Opening

stock

Target

for

NEXT

month

Average

sales

A 10 27 23

B 15 39 16

C 25 28 31

D 120 169 155

E 16 37 49

Prepare depot indent.




Answer

Product Opening

stock

Target for

NEXT month

Balance

stock

Minimum

floor

stock

Transit

days

indent

A 10 27 -17 4 4 8

B 15 39 -24 4 4 8

C 25 28 -3 8 8 16

D 120 169 -49 39 39 78

E 16 37 -21 13 13 26




Answer

What is the formula?

Target + floor stock – opening stock = indent



Training

Training

&

Development



On the job training

&

Off the job training

Training



On the job training

Training



On the job training

Market work Merchandising Competition

Training



Market work

Training

Callage & Productivity

Range selling

Credit Management

Brands per call Lines per call

Stock pressure

New product launches Coverage

Width & Depth of distribution

Merchandising Trade promotions



Merchandising

Training

Displays

POP Usage

Brand image windows

Hangers DanglersShelf strips

Shelving Gondolas

Posters

Backing paper



COMPETITON

Training

Companies

Launch

promotions

Products

Pricing

Margin Trade

Promotions

Strategy to attack

Price cut Displays credit Consumer offer

Media Trade promotion

media




Training




Reporting Distributor

Management

Communication

Training



Reporting

Training

Daily Reports Weekly Reports Monthly Reports Special reports

DSR -TGT V/s Ach

Callage &Prod

Competition

New product launch

Sales log

Callage & Prod

Target V/s Ach

Primaries

V/s Secondary

Sales log

Callage & prod

Target V/s Ach

Primaries

V/s Secondary

Closing Stock

Stock Order

Off take report

Monthly Business

summaryCoverage

POP Usage

Coverage

Rural Coverage

Rural Coverage



Distributor Management

Training



Distributor Management

Training

Investment Infrastructure Involvement

Stocks

Market credit

Due from the company

Advance with company

Office & Godown

Mechanical and

non units

Furniture

People

Owner

Communication

Signatory

Controls



STOCKS

Training

Minimum floor stock management

Range Selling

Proper stocking in Godown

Re ordering levels

More rotations

Avoid investment blocks

Damage stocks

Free samples

Returned stock



MARKET CREDIT

Training

With in limits

Spread to Maximum outlets

Equal to frequency of visit

Follow bill to bill system

Some cases – Regular collection

DUE FROM CO

Submit claims in time.

Follow up for the pendings

Always have written approval

Be within budget

Keep claims copies



INFRASTRUCTURE

Training

Proper PJPs for vehicles

Vehicle cost management

Sufficient & Proper Godown

Facilities in Godown

Optimal utilization of people



INVOLVEMENT

Training

Owner participation

Communication with owner

Signatory owner

Owner – Market knowledge

Owner – Credit management

Owner Market visits

Owner – Stock management



COMMUNICATION

Training

Proper communication to Market , Distributor & field force

Company plans

Product promotions

Budgets

Investment

New Launches

Company memos

Competition

Requirements



Motivation

Training



W I I F M

Training

What’s in it for me



MOTIVATION

Motivation

Financial

Motivation

Non financial

Motivation



Motivation

CONTINUED IN NEXT

PRESENTATION

THANK YOU VERY [email protected]



Motivation

Financial Motivation

Incentives Bonus Foreign Trip Gold & Silver ESO Commission

Sales force management by Abdul Gafoor

Career

Transcript of Sales force management by Abdul Gafoor